1:2 Bonus Share & Rs 84,400 Crore Order Book: Multibagger Civil Construction Company Signs MoU Worth Rs 600 Crore with HUDCO
The stock gave multibagger returns of over 100 per cent from its 52-week low is Rs 45.69 per share.
On Thursday, shares of NBCC (India) Ltd-backed by the President of India & LIC; jumped 3.26 per cent to Rs 98.82 per share from its previous closing of Rs 95.70 per share with a spurt in volume by more than 3.36 times on BSE. The stock’s 52-week high is Rs 139.90 and its 52-week low is Rs 45.69. The company has a market cap of Rs 26,681 crore and has been maintaining a healthy dividend payout of 35 per cent.
The company informed that NBCC (India) Limited has signed an MoU with HUDCO for the development of a 10-acre institutional plot at Noida Sector-62 as a Project Management Consultant. The tentative cost of the project is approximately Rs 600 crore. Housing and Urban Development Corporation Limited (HUDCO) signed a Memorandum of Understanding (MoU) with NBCC (India) Limited on November 27, 2024, in New Delhi. HUDCO intends to develop a world-class institutional complex with 8.71 lakh square feet of built-up area on the 10-acre land parcel it owns in Noida. The complex will include office space, studio apartments, conference space, and retail and common facilities. NBCC will be responsible for the entire project execution, from concept to commissioning.
Additionally, the company has secured a significant work order valued at approximately Rs 316 crore. The project involves the upgradation of Primary School Hostels (PSH) at various locations in the state of Odisha. This contract was awarded by the ST & SC Development, Minorities & Backward Classes Welfare Department, Government of Odisha, and is expected to contribute to the development of educational infrastructure in the region.
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About the Company
NBCC (India) Limited, a prominent government-owned construction company under India's Ministry of Housing and Urban Affairs, offers a comprehensive suite of services across three key segments. Their project management consultancy (PMC) arm tackles civil construction projects for various sectors including residential, commercial, healthcare, and educational institutions. Additionally, they specialize in engineering, procurement, and construction (EPC) for complex structures like high-rise chimneys and cooling towers. Finally, NBCC (India) Limited is a major player in real estate development, building residential townships, apartments, commercial office spaces, and shopping malls.
According to the Quarterly Results, the net sales increased by 19.50 per cent to Rs 2,458.73 crore and the net profit increased by 53 per cent to Rs 124.88 crore in Q2FY25 over Q2FY24. In its half-yearly results, the net sales increased by 16 per cent to Rs 4,602.89 crore and the net profit increased by 46 per cent to Rs 232.09 crore in H1FY25 over H1FY24.
Furthermore, the shares of the company ex-traded bonus shares in the ratio 1:2 i.e., 1 new fully paid-up equity share of Re 1 each for every 2 existing fully paid-up equity shares of Re 1 each to the eligible members of the company as on record date. The ex-date for bonus shares was Monday, October 07, 2024.
The company's order book as of September 30, 2024, stands at Rs 84,400 crore. As of October 2024, the President of India owns a 61.75 per cent stake and the Life Insurance Corporation of India (LIC) owns a 5.11 per cent stake in the company. The stock gave multibagger returns of over 100 per cent from its 52-week low is Rs 45.69 per share. Investors should keep an eye on this mid-cap stock.
Disclaimer: The article is for informational purposes only and not investment advice.